Question 1

What is the High Income Child Benefit Charge?

Accepted Answer

The High Income Child Benefit Charge (HICBC) is a tax charge that claws back Child Benefit from households where one partner's adjusted net income exceeds £60,000. For every £200 of income above £60,000, you repay 1% of your Child Benefit. At £80,000 the charge equals 100% of the benefit — meaning you repay it all. You can continue claiming Child Benefit and paying the charge, or opt out of claiming entirely.

Question 2

When does the High Income Child Benefit Charge start in 2026/27?

Accepted Answer

In 2026/27, the HICBC starts when the higher-earning partner's adjusted net income reaches £60,000. This threshold was raised from £50,000 to £60,000 in April 2024. The charge reaches 100% — meaning all Child Benefit is repaid — once adjusted net income hits £80,000. If both partners earn under £60,000, no charge applies regardless of household income.

Question 3

How is the 1% per £200 taper calculated?

Accepted Answer

For every complete £200 your adjusted net income exceeds £60,000, you repay 1% of your annual Child Benefit. For example, if your adjusted net income is £65,000, that is £5,000 above the threshold. £5,000 ÷ £200 = 25 increments, so you repay 25% of your Child Benefit. With one child (£1,354.60/year in 2026/27), the charge would be £338.65. At £70,000 (£10,000 above threshold) you repay 50%, and at £80,000 the full 100% is clawed back.

Question 4

Can pension contributions reduce my High Income Child Benefit Charge?

Accepted Answer

Yes — pension contributions reduce your adjusted net income, which is the figure used to calculate the HICBC. If your salary is £68,000 and you contribute £8,000 to a pension, your adjusted net income falls to £60,000 — eliminating the charge entirely. For higher earners, this can mean a pension contribution is effectively much cheaper than it appears: a £5,000 contribution that saves £677 in Child Benefit (50% of one child's benefit) has a net cost closer to £2,323 after 40% tax relief plus the benefit restored.

Question 5

Should I opt out of Child Benefit or keep claiming?

Accepted Answer

You should almost always keep claiming Child Benefit, even if you'll repay it all via the HICBC. Claiming builds a National Insurance record for non-working parents (important for State Pension entitlement), ensures your child is automatically registered for a National Insurance number, and maintains eligibility for backdated payments if your income drops. You can opt out of receiving payments to avoid the paperwork of Self Assessment, but still register the claim. Only opt out of claiming completely if you're certain neither partner will ever benefit.

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Understanding the High Income Child Benefit Charge